New MPS Norms 2026: How Reliance Jio, NSE, Flipkart and Other Mega IPOs Could Benefit

India’s IPO market could be heading toward a new wave of large listings after the government eased the Minimum Public Shareholding (MPS) norms. The revised framework allows large companies to list on the stock market while offering a smaller portion of shares to the public at the time of IPO.

This regulatory change is particularly important for high-valuation companies such as Reliance Jio, Reliance Retail, NSE, Flipkart and SBI Mutual Fund, which are either preparing or expected to launch public offerings in the coming years.

For investors, the new rules could significantly reshape how large IPOs are structured in India and may lead to a stronger pipeline of public issues in the coming years.

Understanding Minimum Public Shareholding (MPS)

Minimum Public Shareholding refers to the minimum percentage of a company’s shares that must be held by public investors after the company gets listed on the stock exchange.

Public shareholders include retail investors, mutual funds, institutional investors and other non-promoter stakeholders. The objective of this rule is to ensure sufficient liquidity in the stock and broader participation in ownership.

Under Indian regulations, every listed company must eventually maintain at least 25% public shareholding. However, earlier rules required companies to sell a relatively larger stake at the time of listing, which often created challenges for companies with extremely high valuations.

The new framework attempts to address this issue by allowing lower initial public float depending on the company’s market capitalisation.

What Has Changed in the New MPS Norms 2026

The revised rules introduce a market-cap-based approach for minimum public shareholding at the time of listing.

Companies with a post-issue market capitalisation between ₹50,000 crore and ₹1 lakh crore will now need to offer at least 8% of their shares to the public, compared with the earlier requirement of 10%.

For companies valued between ₹1 lakh crore and ₹5 lakh crore, the minimum public float requirement has been reduced from 5% to 2.75%.

The biggest change applies to extremely large companies. Firms with a post-issue market capitalisation above ₹5 lakh crore can now list with a minimum public shareholding of just 1%, significantly lower than the earlier 5% requirement.

This change is intended to align Indian regulations with global practices and address concerns that the market might struggle to absorb very large share sales in a single IPO.

Timeline to Reach 25% Public Shareholding

Although companies can list with a smaller public float under the new rules, they will still need to gradually increase public ownership over time.

If a company lists with less than 15% public shareholding, it will have five years to reach 15% and ten years to reach 25%.

If the public shareholding is already above 15% at the time of listing, the company will have five years to increase it to 25%.

Importantly, these timelines are not only applicable to new IPOs but will also apply to companies that were listed before the announcement of the revised MPS framework.

Why the New Framework Matters for Large IPOs

One of the key challenges faced by high-valuation companies has been the requirement to dilute a significant portion of ownership at the time of listing. For companies valued in lakhs of crores, selling even 5% of the company can translate into a massive IPO size.

Such large share sales can create pressure on the market’s ability to absorb supply and may affect pricing dynamics. By allowing companies to list with a smaller public float, the new MPS framework reduces this challenge and makes the IPO route more practical for very large businesses.

Experts believe that this move could encourage more high-value companies to consider listing in India, particularly at a time when the IPO pipeline is expected to remain strong.

Here is list of big-ticket IPOs that could benefit from new MPS framework:

Reliance Jio IPO: A Potential Major Beneficiary

Reliance Jio is widely expected to be one of the most significant IPOs in India in the coming years. Reliance Industries chairman Mukesh Ambani indicated at the company’s 48th annual general meeting that the Jio Platforms IPO could take place in the first half of 2026.

The telecom giant is currently working on preparing its draft prospectus. According to reports, the company may divest less than 2.5% of its stake through the IPO, something that would have been difficult under the earlier MPS requirement.

With the revised norms allowing a much smaller public float, the company can structure its IPO more efficiently while still accessing the capital markets.

NSE IPO: A Long-Awaited Listing

The National Stock Exchange of India (NSE) IPO has been anticipated for several years. In January 2026, the exchange received a No Objection Certificate (NoC) from SEBI, clearing a key regulatory hurdle for the proposed listing.

NSE has already appointed multiple intermediaries for the IPO, including several investment banks and law firms, to assist with regulatory filings, documentation and due diligence.

The offering is expected to be structured as a complete offer-for-sale by existing shareholders, and the relaxed MPS norms could make the listing process easier by reducing the initial public shareholding requirement.

Flipkart IPO: Preparing for an India Listing

E-commerce giant Flipkart has also taken a major step toward a potential domestic IPO by shifting its legal domicile from Singapore to India.

This move is widely seen as part of the company’s preparation for a possible listing on Indian stock exchanges. Given Flipkart’s large valuation, the new MPS framework could help the company structure its IPO with a smaller initial public float, making the listing process more manageable.

Reliance Retail IPO: Another Large Listing to Watch

Reliance Retail is another major business within the Reliance group that could benefit from the revised MPS rules. The company is expected to consider a public listing in the coming years.

The ability to offer a smaller stake at the time of IPO could provide greater flexibility in structuring the public issue while maintaining promoter ownership in the early stages.

SBI Mutual Fund IPO

The IPO of SBI Mutual Fund is another anticipated offering in the financial services sector. The promoters are planning to divest up to 10% stake through an Offer for Sale (OFS), and the company is expected to file its draft red herring prospectus in the coming months.

Reports suggest that the IPO could be targeted for the second half of 2026, making it one of the key public offerings to watch in the near term.

What the New MPS Norms Mean for Investors

For retail investors, the revised rules may lead to an increase in the number of large IPOs entering the market. However, smaller public float at the time of listing could also mean fewer shares available initially for public investors.

Over time, companies will gradually increase public shareholding to meet the 25% requirement, which could happen through follow-on offerings or additional stake sales.

Understanding the structure of each IPO, the level of promoter holding and the timeline for future dilution will therefore remain important factors when evaluating investment opportunities.

The new minimum public shareholding norms introduced in 2026 represent a significant shift in India’s IPO regulations. By allowing large companies to list with smaller public shareholding initially, the government has removed a key hurdle that previously made mega IPOs difficult to execute.

As a result, the coming years could see a number of high-profile companies entering the Indian stock market, including potential listings from sectors such as telecom, technology, retail and financial services.

For investors, this could open the door to participating in some of India’s largest and most valuable businesses as they transition into publicly traded companies.